OREANDA-NEWS. December 26, 2012. Nippon Steel & Sumitomo Metal Corporation (hereinafter “NSSMC”) (Chairman & CEO: Mr. Shoji Muneoka) and PT Krakatau Steel (Persero) Tbk (hereinafter “PTKS”) (president director: Mr. Irvan Kamal Hakim) have agreed to conduct a detailed study to jointly launch a business for the manufacture and sales of automotive flat steel products in Indonesia (hereinafter, referred to as the “Joint Venture”).

This will be done with a view toward capturing demand for high-grade automotive flat steel products, the market for which is expected to grow on a medium- to long-term basis following the development of the automotive market in Indonesia.

The two companies have also agreed to establish a joint venture company (hereinafter, abbreviated as “JVC”) to acquire the right to use a piece of land in the Krakatau Industrial Estate Cilegon, which is located adjacent to the manufacturing base of PTKS.

NSSMC and PTKS will discuss the detailed terms and conditions of the Joint Venture with the aim of entering into a definitive agreement in the first half of 2013.

Through the Joint Venture, NSSMC and PTKS intend to meet the demand for high-grade automotive flat steel products mainly from Japanese automakers that have developed their business in Indonesia, as well as to contribute to the further development of the Indonesian automotive industry.